Once Again, IDA Pushes County for Funding
It might be long awaited, but it appears Putnam County’s Industrial Development Agency might finally get county funding to start the new fiscal year.
During the county Legislature’s Economic Development budget review, legislators examined taking some proposed money from the county’s Economic Development Corporation and giving that money to the IDA, which has ben struggling financially for several years. The IDA gives tax incentives to new businesses entering the county, as a draw to Putnam.
Legislator Toni Addonizio suggested taking $75,000 from the EDC, which EDC chairman Jeff Kellogg agreed was fair and then following up, Legislator Roger Gross recommended that money instead go to the IDA, which has less than $500 in their coffers.
“(The IDA) needs to get off the ground,” Gross said. “It would be a move in the right direction.”
Kellogg said the corporation is currently sitting on $207,000 in reserves, after previously having $133,000 a year ago. The ability to save money stems from not paying an EDC president after former president Meghan Taylor left for a better job near the start of the New Year.
Legislator Ginny Nacerino added, she felt it would be a “win-win” for both agencies and taking money from the EDC wouldn’t have an adverse effect on them this year. Legislator Joe Castellano also voiced support to shift the money.
While there was talk from Legislator Dini LoBue to take all the funding from the EDC this year because of its hefty reserves, Kellogg said that would send the wrong message to the incoming EDC president and if all funding is taken away this year, it might make it tougher to get funding in future years.
“Why would I give you another $175,000 if you have it,” LoBue said. “You’re not supposed to be stockpiling money.”
Legislator Barbara Scuccimarra said she was in favor of the EDC retaining all the proposed funding from the county, noting the corporation has run itself well and the IDA had a chance for a $75,000 loan, but it turned it down.
LoBue refuted that and said the loan had many strings attached and Gross countered the contract terms for the loan set up failure for the IDA.
IDA chairman Richard Ruchala, who has been battling the county for more than year, said while the county has allotted money to a couple of outside agencies like the EDC and Putnam Tourism, it has refused to provide funding to an agency that’s actually within the county.
Ruchala said he and the rest of the IDA board wanted to show the county it could get economic development work completed cost efficiently even though it faced certain hurdles. He argued the IDA has accomplishments to boast, while the EDC has nothing to show the past two years.
He was urging county legislators to give the IDA $125,000, which would cover the cost for a CEO and better office equipment.
“It’s quite embarrassing that we don’t get the support,” Ruchala said. “I don’t understand what people are thinking especially when you can basically eliminate the EDC, but you couldn’t eliminate the IDA until 2041.”
Nacerino said because the county is in a difficult position with the budget this year, it wouldn’t be possible to give the IDA more than the $75,000 that could shift from one agency to another.
